• 1 day PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 1 day Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 1 day Syrian Rebels Relinquish Control Of Major Gas Field
  • 1 day Schlumberger Warns Of Moderating Investment In North America
  • 1 day Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 1 day Energy Regulators Look To Guard Grid From Cyberattacks
  • 2 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 2 days New Video Game Targets Oil Infrastructure
  • 2 days Shell Restarts Bonny Light Exports
  • 2 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 2 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 2 days British Utility Companies Brace For Major Reforms
  • 2 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 2 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 2 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 2 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 3 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 3 days Rosneft Signs $400M Deal With Kurdistan
  • 3 days Kinder Morgan Warns About Trans Mountain Delays
  • 3 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 3 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 3 days Russia, Saudis Team Up To Boost Fracking Tech
  • 4 days Conflicting News Spurs Doubt On Aramco IPO
  • 4 days Exxon Starts Production At New Refinery In Texas
  • 4 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 4 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 4 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 4 days China To Take 5% Of Rosneft’s Output In New Deal
  • 4 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 5 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 5 days VW Fails To Secure Critical Commodity For EVs
  • 5 days Enbridge Pipeline Expansion Finally Approved
  • 5 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 5 days OPEC Oil Deal Compliance Falls To 86%
  • 5 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 5 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 5 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 6 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 6 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 6 days Aramco Says No Plans To Shelve IPO
Alt Text

The U.S. LNG Boom Could Be About To Stall

United States LNG has seen…

Alt Text

The Natural Gas Market Is Set To Boom

With the new lower-for-longer oil…

Russia Gets Foothold In The World’s Hottest NatGas Discovery

Russia

Chinese E&P major Sinopec reportedly put its Argentina assets up for a $1 billion sale this week. With one of the interested buyers said to be Russia’s Rosneft. 

And that latter firm made ever bigger waves in the global natural gas industry this week. With the purchase of a stake in one of the largest — and most geopolitically complicated — development projects in the world. 

That’s the Zohr natgas field, offshore Egypt. A find made by Italian major Eni — which holds a massive reserve of 30 trillion cubic feet of natural gas. 

Eni announced this week it is selling a 30 percent interest in Zohr to Rosneft. With the Russian firm paying $1.125 billion for the stake, and reimbursing Eni for a proportionate share of historic costs. 

That will now give Rosneft a foothold in one of the world’s most important emerging natgas areas: the eastern Mediterranean. A place where recent massive discoveries in Egypt and Israel, and high-profile exploration activity in places like Cyprus, have brought the region to the forefront of the global energy scene. 

Taking a role in this emerging hotspot is exactly what Rosneft is looking for. With the company’s CEO Igor Sechin noting he expects the deal to “strengthen positions of Rosneft in the strategic markets of Europe and Middle East”. Related: Oil Giants At Odds As Saudi, Russian Ties Improve

Gaining influence in this key region would continue a major expansionary campaign by Rosneft of late. With the major also having expanded into India, and forged business ties with China over the last few months. 

All of which shows that the firm — and perhaps Russia in general — is intent on playing a larger role in the global energy order. And even new U.S. sanctions aren’t deterring them, with the 30 percent Zohr stake coming in under the 33 percent ownership threshold that might trigger trade action. 

Watch for more deals coming from Rosneft (perhaps on the Sinopec Argentina assets) — which would cement the company as one of the biggest driving forces in the oil and gas world right now. 

Here’s to going all in.

By Dave Forest

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News